Klahoose First Nation and Alterra Power Sign Agreement for Upper Toba Project

05/23/2012

VANCOUVER, May 23, 2012 /CNW/ - Alterra Power Corp. (TSX: AXY) and the
Klahoose First Nation are pleased to announce that they have signed a
Resource Development Agreement (RDA), establishing the framework under
which Alterra and the Klahoose will work together to advance the Upper
Toba run-of-river hydroelectric project, which lies within the
traditional territory of the Klahoose First Nation.

The comprehensive RDA sets out the terms under which the construction of
the facilities can proceed and the project can be brought into
commercial operation.

Klahoose Chief James Delorme said, "This agreement between the Klahoose
First Nation and Alterra Power builds upon our Toba Montrose agreement
and represents another significant milestone for our Nation. The
Klahoose First Nation supports quality green energy development in our
traditional territories, achieved with a partner that is respectful of
our land, our culture and our people. We value the work our past
leaders have done for us to get us to this place. It has helped us to
make a difference building this new profound agreement."

Donald McInnes, Alterra's Executive Vice Chairman, said, "We value our
relationship with the Klahoose First Nation and are very grateful for
their support of run-of-river hydro projects in their traditional
territory. We look forward to working together again in the Toba Valley
to develop and operate these environmentally-responsible projects that
will benefit the Klahoose First Nation and all British Columbians."

About Upper Toba Hydroelectric Project

The Upper Toba run-of-river hydro power project is an expansion of
Alterra's operations in the Toba Valley, where the 235 MW Toba Montrose
run-of-river hydro facility is located. The project will comprise two
new run-of-river hydro power plants, at Jimmie Creek and the Upper Toba
River, with a combined capacity of up to 124 MW, subject to final
design. The new facilities will utilize much of the infrastructure
already in place for Toba Montrose. The project has a 40-year power
purchase agreement in place with BC Hydro, has received its
Environmental Assessment Certificate and has signed an interconnection
agreement with BC Hydro.

Upper Toba is located on the traditional lands of the Klahoose First
Nation and the project will use the existing Toba Montrose power line,
which travels through the traditional territory of Alterra's partners,
the Sliammon and Sechelt First Nations.

Cautionary Note regarding Forward-Looking Statements and Information

This news release contains certain "forward-looking information" within
the meaning of Canadian securities laws, which may include, but is not
limited to, statements with respect to future events or future
performance, the fulfillment of all conditions precedent to the
obligation of the parties under the agreements, required consents and
third party approvals. This news release also contains statements with
respect to our plans to expand our operations, management's
expectations regarding our growth, business prospects and opportunities
and energy generation capacities. Such forward-looking information
reflects management's current beliefs and is based on information
currently available to management.

You are now leaving Alterra Power Corp.’s website. The views, opinions and information presented are solely of the author and not representative of those of Alterra Power Corp., its directors, officers or employees.

Alterra Power Corp. disclaims responsibility in respect of any third party web sites and any views, information or opinions contained therein.